The cost of health care and the effect it could have on their retirement is a top concern for a strong majority of older adults, according to a new study.
Nationwide Retirement Institute’s Health Care Costs in Retirement Consumer Survey found that 69% of 1,462 U.S. adults age 50 or older with investable assets of $50,000 or more who have retired or plan to in the next 10 years said that health care expenses spiraling out of control was among their top fears during retirement.
Even more future retirees – nearly 80% of adults who are age 50 or older and are working – are somewhat or very concerned about health care costs in their upcoming retirement, and 76% identified it as their top fear. Half of future and recent retirees expressed confidence that they will be able to cover health care costs beyond what Medicare covers.
Disconnects Abound
The study identifies somedisconnects between rational recognition and behavior that would respond to, or even obviate, problems posed by concerns over health care costs and retirement. For instance, Nationwide found that many older adults also have regrets about their actions over the years, with nearly half of those who are retired (46%) reporting they would save more in their retirement accounts if they could plan for retirement over again. Half of recent retirees said so.
Financial health and health care are related, the study also found. “Financial matters are making people sick, and the king of all financial worries over a lifetime is health care,” says Nationwide in a press release. However, the researchers also found that recognition of the importance of health care doesn’t necessarily translate to action.
For instance, while many older adults are concerned and stressed about health care costs, the study says that a majority also are not having informed discussions with professionals on how to prepare. In fact, just slightly more than 30% of older adults plan on discussing health care costs during retirement or long-term care costs with a financial advisor or consultant.
Nationwide’s findings were gathered from a survey conducted online by Edelman Intelligence from July 9-13, 2019, among 1,000 U.S. adults ages 25 to 45. To view our post on the results of the survey pertaining to younger adults, click here.
